Financial Regulation

Financial Regulation

August 2017 GSE Report

Moody’s Analytics projects loss in southeast Texas to be between $51 billion and $75 billion,with home and vehicle damage estimated at $30 billion to $40 billion. However, total losses could continue to rise as the storm moves into Louisiana. According to [Warren] Buffett, if those uninsured losses top $150 billion, there will be noticeable effects on the economy. “I don’t think it would be a full percentage point for a year or anything like that. But it has a real effect. It destroys wealth. If there’s $150 billion, or something, of uninsured losses that’s real wealth,” Buffett said on CNBC’s Squawk on the Street.


DS News

Brianna Gilpin

August 30, 2017

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Posted: September 5th, 2017 | Permalink

Megabanks Spend 100% of Earnings on Share Buybacks

“In total, the 10 largest banks combined, on an annualized basis, will plow 99% of their earnings into share-buybacks and dividends. Share-buybacks alone amount to $83 billion (not counting dividends),” wrote Wolf Richter. “Under existing capital rules, if the banks were to retain this capital instead of buying their own shares with it, they could have increased commercial and consumer loans by $741 billion. And they could have still paid out their big dividends. If they cut their dividend payments some, they could have boosted their lending by over $1 trillion.”

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Posted: August 7th, 2017 | Permalink

The GSE Report for July 2017

U.S. growth forecast downgraded by IMF.

The growth forecast in the United States has been revised down from 2.3 percent to 2.1 percent in 2017 and from 2.5 percent to 2.1 percent in 2018. While the markdown in the 2017 forecast reflects in part the weak growth outturn in the first quarter of the year, the major factor behind the growth revision, especially for 2018, is the assumption that fiscal policy will be lessexpansionary than previously assumed, given the uncertainty about the timing and nature of U.S. fiscal policy changes. Market expectations of fiscal stimulus have also receded.



World Economic and Financial Surveys

International Money Fund

July 24, 2017


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Posted: August 3rd, 2017 | Permalink

Washington's New Class of Financial Regulators

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Posted: August 2nd, 2017 | Permalink

CFPB Finalizes TRID Changes and Clarifications

“On July 7, 2017, …[the CFPB] announced regulations to finalize changes and clarifications to the [TRID] Disclosure rule… For the most part, the CFPB finalizes its proposals with modifications here and there to address issues and questions raised by public comments… [and] declines to finalize certain proposals based on concerns for unintended consequences or borrower confusion. In ...perhaps the most important proposal..., the CFPB declines to finalize its proposal to address the ‘black hole’ on resetting fee tolerances… [and] offers a new proposal with a 60-day comment period.”

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Posted: July 26th, 2017 | Permalink

Will FHFA Require Lenders to Ascertain Language Preferences in a Loan Application?

“When, if at all, should a mortgage lender or servicer be required to conduct business in a foreign language simply because the consumer has expressed a preference to communicate in a different language? Where does one draw the line in terms of both the number of languages and the scope of the tasks in which a lender should be prepared to conduct business at the request of the consumer? …[D]oes the consumer’s expressed language preference follow ownership of the loan or the mortgage servicing rights…?”

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Posted: July 20th, 2017 | Permalink